Coinciding with this change, the Board has approved a 23.8% increase in
the quarterly dividend. The Board has declared a dividend at the new
payout rate of $0.26 per common share, payable on March 19th, 2013, to shareholders of record as of March 4th, 2013.

"Our strong cash flows have enabled us to increase our dividend for the
sixth consecutive year and increase the target payout range, thereby
returning more capital to our investors," said Cynthia Devine, Chief
Financial Officer.

Dividends are declared and paid in Canadian dollars to all shareholders
with Canadian resident addresses. For U.S. shareholders, the dividends
will be converted to, and paid in, U.S. dollars based on prevailing
exchange rates at the time of conversion by Tim Hortons for registered
shareholders and by Clearing and Depository Services Inc. for
beneficial shareholders. The payment of future dividends and the
targeted payout range remain at the discretion of the Board of
Directors.

Tim Hortons Inc. Overview

Tim Hortons is one of the largest publicly-traded restaurant chains in
North America based on market capitalization, and the largest in
Canada. Operating in the quick service segment of the restaurant
industry, Tim Hortons appeals to a broad range of consumer tastes, with
a menu that includes premium coffee, espresso-based hot and cold
specialty drinks including lattes, cappuccinos and espresso shots,
specialty teas, fruit smoothies, home-style soups, fresh Panini and
classic sandwiches, wraps, hot breakfast sandwiches and fresh baked
goods, including our trademark donuts. As of December 30th, 2012, Tim Hortons had 4,264 systemwide restaurants, including 3,436 in
Canada, 804 in the United States and 24 in the Gulf Cooperation
Council. More information about the Company is available at www.timhortons.com.